Coca-Cola's Revenue Misses on Weak International Markets

Coca-Cola Co. reported lower-than-expected quarterly revenue as higher sales in North America failed to make up for weakness in many of the company's emerging and developing markets, including China and Argentina.

Shares of the world's largest beverage maker, which also cut its full-year organic revenue growth forecast, were down 2.2 percent at $43.89 in premarket trading on Wednesday.

"Strong performance in some of our largest and most developed markets, including the United States, Mexico and Japan, was offset by difficult external conditions in many of our emerging and developing markets, including China and Argentina," Chief Executive Muhtar Kent said in a statement.

The company said its China bottling operations posted weak volume performance, while sales of juice were also hurt.

Some Latin American economies, including Venezuela and Argentina, are facing high levels of inflation amidst political instability, weighing on revenues of several multinational companies. The region accounted for 9 percent of Coca-Cola's total revenue in 2015.

Coke said it would reassess local market initiatives in such markets where external headwinds have proven to be more severe than originally forecast.

The company said it now expects full-year organic revenue to grow 3 percent in 2016, down from its previous forecast of 4-5 percent growth.

Revenue from North America, the company's largest market, rose 2 percent in the second quarter ended July 1, while it fell in all other regions, partly hurt by inflation.

Coca-Cola Co. reported lower-than-expected quarterly revenue as higher sales in North America failed to make up for weakness in many of the company's emerging and developing markets, including China and Argentina.
Shares of the world's largest beverage maker, which also cut...